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Business Strategy

TX Holdings, Inc. has partnered with many vendors and customers since our startup of the Rail and Mining Supply division of our business. We are committed to expanding our customer base and lowering our cost.

TX Holdings, Inc. is actively looking for producing and non-producing shallow, low risk oil and gas leases in the Kentucky, Ohio and West Virginia area. We have developed strict criteria regarding acquisition of these leases. Our criteria is as follows:

1. The potential leases must have existing wells and large, undeveloped non-depleted shallow reserves. This ensures that they are good candidates which fall under our requirements of being capable of producing oil in the short term once we have completed the necessary workovers or recompletions.

2. The potential leases should ideally have approximately 75-80% of undeveloped acreage which will fall into our set guidelines. We will then utilize low-cost, low-risk infield drilling to facilitate the development program.

Our goal is to build our business into an industry leader by providing top quality products at competitive prices to our customers through key alliances and acquisitions.

We are truly excited about our prospects over the coming months and years.

----Buck Shrewsbury